Barrick Gold Sees Decline in Gold and Copper Production in First Quarter
Canadian miner Barrick Gold announced on Tuesday that its gold and copper production had decreased sequentially in the first quarter. This decline was attributed to lower grades and maintenance at its mines.
Expectations for Increased Production
The company stated that it anticipates gold and copper production to rise each quarter throughout the year. This growth is expected to be driven by the ramping up of production at its Pueblo Viejo gold mine in the Dominican Republic starting in the second quarter.
Preliminary Output Numbers
In the three months ending March 31, Barrick reported a total preliminary output of 940,000 ounces of gold and 40,000 tonnes of copper. This marked a decrease from the 1.05 million ounces of gold and 113 million pounds of copper produced in the previous quarter.
Cost Projections
Barrick projected that the all-in sustaining costs (AISC) per ounce of gold for the quarter would be 7% to 9% higher than the previous quarter. Additionally, the AISC for copper in the first quarter was expected to increase by 14% to 16% from the previous quarter.
Market Reaction
In premarket trading, U.S. shares of Barrick Gold were down by 1.4%, while spot gold prices had also declined by 0.4%.
Upcoming Events
The Toronto-based company is set to release its fourth-quarter results on May 1, 2024.
Insight: While Barrick Gold faced production challenges in the first quarter, the company’s optimistic outlook for increased production in the coming quarters suggests that it is actively working to address these issues and improve operational efficiencies. Investors will be closely monitoring the company’s performance in the following quarters to see if it can deliver on its production targets.
Reporting by Vallari Srivastava in Bengaluru; Editing by Tasim Zahid
